St. Vincent Catholic Medical Centers, New York, plans to emerge from bankruptcy in mid-2007 and then hopes to start construction on a new state-of-the-art hospital.
The plan of reorganization filed with the U.S. Bankruptcy Court in New York last week includes exit financing that will refinance existing debtor-in-possession credit, provide funding to the nonunion pension plan, make payments to trade creditors of at least 80 cents on the dollar and fund pre-bankruptcy medical malpractice claims.
After emerging from bankruptcy, the new hospital would be built diagonally across from the flagship hospital in Greenwich Village, a spokesman said. Hospital officials anticipate they would sell the current building to developers, financing the replacement facility through the sale and a philanthropic effort, he said. Officials anticipate the approval process alone could take as long as 24 months. Officials estimate the cost of construction would be about $650 million. St. Vincent has closed one hospital and divested three others since filing for bankruptcy in July 2005. -- by Cinda Becker